When it comes to your business you want nothing but the best for it. No matter whether you’re a big business or just starting off on your journey, there are many costs that you have to think about, and whether you like it or not, running a business costs money especially for the start up side of things. However, even though the plan is to create profits that outweigh the costs, there are aspects of your business that could help you save money in the long run. Here are some easy ways to save big money on your business.
At some point every business owner will need to ask a member of staff to do extra hours, especially if another member of staff is off sick or on holiday. However, the extra money that you’re spending on wages soon adds up and can leave the business out of pocket and down on profits. A great way to avoid this from happening is to eliminate overtime pay. While members of staff are still expected to do overtime when it’s needed, rather than paying them you can simply offer them the hours that they worked back to have off as paid holiday. For example, if a member of staff has to cover a three hour shift, on another day they would be able to leave three hours early without losing any pay that day.
Of course, if it appears that many members of staff have a lot of overtime owed to them it might be time to think about employing another member of staff. This might seem counterproductive but if you’re in need of the extra person then your profits shouldn’t be suffering and you will need to look into other avenues to save money.
Almost always it’s always better to invest money to save you money in the long run when it comes to business. So when it comes to equipment and other things that are used within the business regularly, it’s a good idea to go durable to make sure that it lasts longer and therefore giving you more time between each replacement.
Things like flooring need to be durable, especially if you’re in an environment where it can easily become corroded by chemicals or even rain. If you have an area of your business that is based outdoors, consider getting fibreglass grating rather than steel because it’s much less likely to corrode. This will ensure that you’re not spending money on maintenance and will also last much longer than any other material.
Other things that need to be durable include office chairs and desks. Rather than going for the cheapest on the market, spend a little extra money and make sure that your equipment is going to last for the long haul. The more expensive the equipment is, the better it will look too which will also reflect well on your business.
Also, being self sufficient as a business will save money in the long run too. Consider investing in solar panels so that the cost of the energy you’re using is dramatically reduced. Another bonus is that an environmentally friendly business will create a good impression for your customers.
Concentrate on stock counts
Counting stock isn’t something that many people like doing as it can be a tedious process. However, a lot of profit loss can come from miscounting of stocks. Whether you’re counting items of food, products that you sell, or even stationary that you have in your office, make sure that you concentrate on the stock counts to ensure that you’re not accidentally losing out on profits when you don’t need to be.
Another way that you can improve on stock is by making sure that you’re not over ordering and perishable items aren’t going to waste. For example, if you’re running a kitchen or a place that serves food, make sure that you’re taking into account items that have to be voided and also any waste at the end of each day. If needs be order less so that your waste is dramatically reduced. Be sure to inform your staff of your goals so that they can make sure that this doesn’t happen too.
Create an offer
One way to get customers through your doors and buy the products or services that you’re selling is to create an offer that they can’t resist. Do some research on other competing businesses and see if you can make an offer that blows theirs out of the water.
While you might think that creating a sale for your customers will result in you losing money, it can work the other way if the offer is right. Enough sales of the item you’ve created an offer on and money will begin rolling into your business. Make sure that each offer you’re creating has a limited time and that once one offer is over, you’re beginning another one. Doing this will not only bring current customers back, but it will attract new ones too.
Negotiate prices at all costs
While things like wages can’t be negotiated because there’s national minimum wage limits, other costs that your business pays out can be. If you feel that your supplier could reduce the amount that you’re paying then take the time to speak to them and negotiate a more agreeable price. Failing that, threaten to find a new supplier and more often than not you will find that suppliers are willing to reduce prices to keep a loyal customer.
Other costs include things like electric, gas, and water bills that supply your business. Much alike your product suppliers, companies that supply your energy are more often than not able to reduce prices too. There are so many different offers and tariffs that you could be on, so make sure that you’re on the one that gives you the best deal for your money.
Make a list of all of the businesses outgoing costs and do the same as above for each of them. Negotiating prices will likely lead to less outgoings for the business.
If you’ve tried all of the above and you still can’t keep your head above water with profits, then it might be time to consider downsizing. While this might feel like a massive step back in business terms, it’s definitely better than losing the business altogether. Reduce hours of staff, move to a smaller location, or even reduce the amount of products that you’re offering to your customers.
Downsizing doesn’t have to be a bad thing either. It may be the result of biting off more than the business could chew when you started. Slow and steady will win the race, so take your time with it. Once you’re financially stable again, you can begin looking on growing back to the size your business was before and beyond.
Take these six ideas on saving money with your business and put them into practise as soon as possible. Even if you’re not struggling financially with your business, saving money and creating more profits isn’t going to be a bad thing. Remember that with a bit of common sense, sensible stock ordering, and clever equipment purchases, you should find yourself not having to fork out as much as you’re currently doing.